The interest of Facebook’s lookalike audiences for the dealership:

The Facebook Lookalike Audience: a powerful tool for targeted dealership advertising

The Facebook Lookalike Audience: a powerful tool for targeted dealership advertising

What if it were possible for a dealership to reach targets that have the same profile as its current customers? This is the promise made by Facebook Lookalike Audience. Their operation is relatively simple: define the characteristics your customers share and find new people with those same characteristics. With an obvious stake: reach specific targets who are more likely than average to become customers of the dealership.

Lookalike Audience applied to the Automotive sector: how does it work?

Facebook Lookalike Audience targets people who share similarities with an audience chosen by the dealership (the Facebook community, dealership customers, etc.). The tool analyses the source database provided by the dealership in order to identify characteristics shared by this audience such as location, a specific area of interest, or certain web behaviours.

Once this first step has been completed, Facebook compares the audience of the automotive dealership network with the user data it has at its disposal. The potential comparative panel is colossal given that that Facebook has about 35 million active users in France (1). To make the targeting as accurate as possible, the Facebook algorithm uses all the data provided by users (personal information, likes, comments, posts, etc.) and uses cookies that show the web path from Facebook. At the end of this analysis phase, which can take between 6 and 24 hours depending on the complexity of the source audience, the social network makes a promise: find targets that match your target audience as closely as possible.

Facebook Lookalike Audience is a useful targeting tool for dealerships.

And, whilst Facebook video is indeed a powerful tool to promote the dealership’s offers, Lookalike Audience is of even greater interest. Based on an artificial intelligence program, it releases the full potential of Facebook and puts it at the service of the dealerships. For the dealer, this has many advantages:

Better targeting: Interest-based targeting is a marketing technique that is far from new. The problem is that it is generally fragmented, in particular because it is impossible to analyse and exploit all the available data. With Facebook’s Lookalike Audience, all available information is used to ensure the most accurate targeting possible.

– Considerable time saving: defining the common characteristics of an audience, buying a database to find new targets, selecting profiles similar to its audience… so many tasks that require a high level of expertise and a lot of time. By automating these different steps, Facebook Lookalike Audience allows the Marketing department of the automotive network to save a lot of time. This saved time can be devoted to tasks requiring real human know-how, such as automotive customer relations for example;

– An accessible tool: Whilst “traditional” targeting campaigns require a lot of resources and specific skills, this is not the case for similar Facebook audiences. Even without advanced marketing knowledge, we can  reach prospects with similarities to the dealership’s customers. The only pre-requisite: the compared audience (of potential prospects) must be sufficiently large to identify real common characteristics;

New business opportunities: for the automotive dealership network, it is very difficult to reach an unknown person in a relevant way. With the Facebook tool, you can very easily identify potential targets, while knowing their characteristics and expectations. In addition to carrying out more targeted communication actions, this allows you to have a better ROI (return on investment).

Creating a similar audience for more targeted advertising

The use of Facebook Lookalike Audience takes place in three stages: create the source audience; identify a lookalike audience; use that audience.

Choosing a source audience

The first step for the dealership is to define a source audience. To do this, you need to select information you already have about people who match the profiles that you want to reach. The easiest way to do this is to choose the fans of the dealership’s Facebook page or the user data of your mobile application (if you have created one). However, the best thing is to use a personalised audience (moreover useful with Facebook Lead Ads)

The personalized audience: the ideal source audience for a dealership

The personalized audience is a list created by a dealership that includes typical profiles. They may be prospects or customers from your database, subscribers to your newsletter, people who have visited your website, or people who have interacted with the dealership. This audience which is much more specific than the Facebook community is of the greatest relevance when you want to create a similar audience.

For Facebook Lookalike Audience to identify commonalities, keep in mind that the source audience should ideally be between 1000 and 50,000 people. Remember also that the quality of the source data is important (e.g. customers are of more interest than unqualified prospects). Last point: smaller audiences allow for a more relevant profile and therefore better targeting, whilst larger audiences increase potential coverage.

Targeted advertising using Lookalike Audience

Once the source audience has been provided to Facebook, the latter’s algorithm will search the social network’s database for similar profiles. Once a lookalike audience has been defined, the dealership can carry out a targeted advertising campaign aimed at this target. Lead ads, sponsored posts, Facebook videos… the possibilities are numerous. As long as targeting is not interrupted, Facebook Lookalike Audience will continue to update this audience every 3 to 7 days, allowing you to communicate only with profiles that have similarities to your source audience.

(1) Facebook, Instagram, Messenger : how many users in France? – Le Figaro – 2019

Optimising your dealership’s digital strategy using IMAWEB
As a partner of automotive dealership networks, IMAWEB can help you to create a lookalike audience and to use this audience on tailored campaigns.  To improve the digital strategy of the dealership, IMAWEB also offers complementary tools and services:
– webmarketing support provided by digital automotive specialists;
– the creation of a digital dealership;
– the implementation of web modules dedicated to the dealership’s activity (marketplace, car trade-in, financing, etc.).

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